Posted by Philip Johnson on 2/10/10 4:11pm
Msg #322287

Taxes and HR Block at home

I have always done my own taxes with the help of various software. This year I see an error in the code of HR Block at home.

The mistake has to do with schedule M (making work pay credit). The software is reading off the SE tax line rather than line 31(profit or loss) of Schedule SE and or line 12 of the 1040. I claim my notarizations reducing my SE tax due (this is always up for discussion, but hey I do). Their software takes the notarization amount claimed and subtracts it from your profit and pays the credit according to the sum left.

This is wrong. Making work pay credit is paid off line 31 of your schedule SE and as long as your total is above $12904 filing jointly you are eligible for the $800.00.

I have talked with HRB about this now for a total of 3 hours and they seem not to understand Notaries and SE tax or they just don't want to admit their software has a flaw. Either way I'd suggest paying close attention if you use this software and or try another brand.

Reply by Linda_H/FL on 2/10/10 4:24pm
Msg #322289

Thank you Philip..I use Turbo Tax

forgot about that credit - our return is done but I want to go over it one more time before I file...now I know to look again

Thanks!!

Reply by Philip Johnson on 2/10/10 6:02pm
Msg #322292

Update 1A

Just finished another round of talking with HRB and they and I saw the light. After poring over the IRS regs any money you take as notary fees off your SE tax DOES NOT count towards the make work count credit.

So in this case I was wrong and the software was right. Somewhere in this is a lesson, but I'm not going to look for it.

Reply by WDMD on 2/10/10 7:25pm
Msg #322308

Re: Update 1A

"Just finished another round of talking with HRB and they and I saw the light. After poring over the IRS regs any money you take as notary fees off your SE tax DOES NOT count towards the make work count credit.

So in this case I was wrong and the software was right. Somewhere in this is a lesson, but I'm not going to look for it. "

I'm curious. Where does HRB put the exempt notary income? On line 21 of the 1040? If so that is incorrect according to the instructions for form 1040, schedule C, and schedule SE. All three state that notary income should be placed on schedule C, which could affect the schedule M.

Reply by Philip Johnson on 2/10/10 8:22pm
Msg #322324

Pull the worksheet for schedule M

Line 2B about 3/4's of the way talks about this.

Reply by WDMD on 2/10/10 8:46pm
Msg #322326

Re: Pull the worksheet for schedule M

"Line 2B about 3/4's of the way talks about this."

OK. Got you. I see what you are saying for Sch M. Looks like that is correct.

Reply by Susan Fischer on 2/10/10 10:56pm
Msg #322346

CPA for me this year, lots of changes. I appreciate his

thirst for the latest law and updates.

After lo, these many years, I have a dependent again, and I have no interest in trying to do it myself. My focus is closing out my QueeksBooks and turning it over to the professional.

Talk about a load off. I love not having to wear ~all~ the hats.